Attorneys for Mary Treadwell, who is charged in connection with an alleged scheme to misappropriate thousands of dollars from federally funded housing projects through a Youth Pride Inc. spinoff firm, asked a U.S. District Court judge yesterday to dismiss several charges against Treadwell.
Treadwell's attorneys argued that charges of mail fraud and conspiracy to defraud the government should be dismissed and that Treadwell should be tried separately on the charges of conspiracy and income-tax evasion.
Judge John Garrett Penn took the matter under advisement, and did not indicate when he would rule on the motions.
John W. Nields Jr., Treadwell's attorney, said the conspiracy charge should be dismissed because it is overly broad and "duplicitous" as stated in a grand jury indictment.
Assistant U.S. Attorney Stephen R. Spivack, however, argued that the indictment shows there was "a single continuous scheme" to defraud the Department of Housing and Urban Development and the Internal Revenue Service even though Treadwell allegedly used different means to conduct the conspiracy.
Robert G. Joseph, another of Treadwell's attorneys, said the mail fraud charge should be dismissed because "the items mailed did not further the alleged scheme." The items in this case were deeds to houses that the defendants were able to purchase in part through funds allegedly misappropriated from the Clifton Terrace Apartments, which were owned by P.I. Properties, a real estate spinoff of Youth Pride Inc.
But Assistant U.S. Attorney Melanie G. Dorsey argued that there was "no way" that Treadwell's alleged scheme to defraud the government "could reach fruition before the mailings of the house deeds " were made.
Nields also argued that the charges against Treadwell of failing to file income-tax returns from 1976 to 1978 and failing to pay more than $52,000 in income tax are "irrelevant" to the conspiracy charges and should be tried separately.
However, Assistant U.S. Attorney William D. Pease argued that "the evidence relating to Treadwell's overt acts of tax evasion parallel in significant part the evidence of her scheme to defraud both HUD and the IRS."